Central Bank governor Nandalal Weerasinghe said the rupee's recent depreciation reflects global market trends rather than domestic mismanagement and that the CBSL intervenes to prevent excessive swings; the rupee closed around 326.00/327.00 to the dollar.
Sri Lanka's rupee was quoted at 324.50/325.00 to the US dollar and government bond yields were largely flat (e.g. 2028s ~9.65–9.75%), while the ASPI fell 0.19% to 22,963 and the S&P SL20 fell 0.14% to 6,278.
Sampath Bank posted PAT of Rs. 6.2 billion for 1Q 2026 on total operating income of Rs. 28.5 billion, with total assets crossing the Rs. 2 trillion mark. PAT fell 26% YoY due to Rs. 4.5 billion impairment charges and lower one-off gains, while NII rose 5% and loans grew by Rs. 127.5 billion.
President Anura Kumara Dissanayake said Sri Lanka's oil import bill rose from $98m in February to $216m in March and $368m in April, with May projected at $522m, increasing FX outflows and subsidy costs. He noted diesel costs ~Rs.720/L but is sold at Rs.392 (CPC receives Rs.492), with CPC losses of Rs.84bn moved to the Treasury and electricity tariffs under pressure.
Treasury Bill auction was fully subscribed, raising Rs.80 billion and saw yields decline to 8.13% (91-day), 8.23% (182-day) and 8.49% (364-day). Secondary bond yields later edged up on profit-taking, money-market liquidity surplus was Rs.255.68bn and USD/LKR closed at 324.00/325.50.
CBSL Economic Research Director Dr. Lasitha Pathberiya warned prolonged Middle East conflict and rising global volatility threaten growth and government revenue, urging sustained structural reforms and stronger fiscal and external buffers. He noted 5% growth in 2025, improved financial-sector metrics, and a likely wider 2026 trade deficit.
Interest RatesRupee & ForexFuel & Energy PricesExporters
Sri Lanka's rupee closed weaker at 326.00/327.00 to the one-week US dollar on Wednesday with no spot trading. Government bond yields were largely steady, with the 01.07.2028 paper at 9.65/75% and minor changes across other maturities.
Treasury auction raised Rs.176.62bn of Rs.250bn offered with yields largely in line or below market (01.08.30 at 10.16%; 15.06.34 at 11.24%; 15.08.36 at 11.40%; 15.08.39 rejected). Secondary bonds rallied, net liquidity surplus was Rs.247.19bn and USD/LKR closed near 322.50/323.00.
Interest RatesRupee & Forex
Daily FT·May 13, 2026·Major contract or orderPositive
Home Lands Group signed an SPA with CHEC Port City Colombo to develop a $150m twin-tower high-rise in Port City's Central Park District, part of a project valued at over $300m and expected to attract significant foreign currency inflows. The development will offer over 600 ultra-luxury residential, commercial and recreational units.
Construction ActivityRupee & Forex
Ada Derana·May 13, 2026·Earnings & results·SAMPNegative
Sampath Bank reported PAT of Rs 6.2 Bn for Q1 2026, down 26% YoY mainly due to Rs 4.5 Bn of impairment provisions despite Total Operating Income of Rs 28.5 Bn and 5% NII growth. Total assets topped Rs 2.1 Tn with Rs 127.5 Bn loan growth; capital ratios remain above regulatory minima.
Sri Lanka's rupee weakened to 323.75/324.25 per US dollar (from 323.70/90), while bond yields edged lower and an 80,000 million rupee Treasury bill auction is ongoing. The ASPI fell 0.12% to 22,987 and telegraphic transfer USD rates were 319.00/326.00.
Sri Lanka's rupee closed weaker at 323.70/90 to the US dollar (from 322.00/30), while government bond yields edged lower — e.g. the 01.07.2028 bond at 9.60/70% (down from 9.65/75%). An 80,000 million rupee Treasury bill auction is scheduled for Wednesday.
Foreign investors sold a net US$4.06 million (1,280 million rupees) of Sri Lanka government rupee bonds in the week to May 7, central bank data showed. The outflow brings total foreign investment into rupee bonds to 1,366 million rupees in the first 18 weeks of 2026, down sharply amid depreciation pressure and higher fuel-driven inflation.
The Sri Lankan rupee weakened to 322.25/65 per US dollar from 322.00/30, while government bond yields were largely steady ahead of a 250,000 million rupee Treasury bond auction and an 80,000 million rupee T-bill auction. The All Share Price Index was up 0.14% and the S&P SL20 up 0.05%.
Secondary bond yields held broadly steady and activity was subdued ahead of a Rs.250 billion Treasury bond auction on 12 May 2026 across four maturities. Fiscal data showed a stronger primary and overall budget surplus for Feb 2026, USD/LKR closed near 322.00/322.40 and money-market liquidity was a Rs.262.96bn surplus.
Sri Lanka's rupee closed weaker at 322.00/30 to the US dollar on Monday (from 321.70/90), while government bond yields were largely steady. Authorities will auction 250,000 million rupee Treasury bonds on Tuesday and 80,000 million rupee Treasury bills on Wednesday.
The Sri Lankan rupee has depreciated 3.6% against the US dollar year-to-date, with an indicative USD/LKR spot rate of Rs.321.87 (buy Rs.318.03, sell Rs.325.64) as of 8 May 2026 — the weakest level since 16 January 2024.
Sri Lanka's rupee was quoted at 321.40/90 to the US dollar and bond yields were broadly steady with quoted yields around 9.75–11.05%. Authorities plan auctions this week for 250,000 million rupee Treasury bonds and 80,000 million rupee Treasury bills.
Sri Lanka recorded a primary surplus of Rs. 545.42 billion in Jan-Feb 2026 (up 66% YoY) and an overall Budget surplus of Rs. 169.71 billion, with revenues rising 35.5% to Rs. 1.03 trillion while expenditure growth was contained at 1.6%.
Interest RatesRupee & ForexFuel & Energy PricesConstruction Activity
Private sector credit rose by Rs. 258.4 billion M-o-M to Rs. 10.7 trillion in March (2.5% M-o-M) and expanded 27.1% YoY. Domestic banking units accounted for most of the increase, and the CBSL expects credit momentum to continue in 2026 though it may moderate amid geopolitical risks.
Sri Lanka's official reserve assets fell $267m to $6.76bn in March, with foreign currency reserves down $295m to $6.54bn; the CBSL was a net seller of dollars in April (net $13m). Predetermined near-term FX obligations total $2.1bn and forward short positions amount to $3.87bn.
Workers' remittances rose to $767.9m in April 2026 (up 19% YoY) and exceeded $3.06bn in Jan–Apr (up 24.5% YoY), marking record inflows that bolster Sri Lanka's foreign-exchange reserves amid weak exports and tourism.
Secondary bond yields fell across the curve last week after US–Iran deal optimism improved risk sentiment (e.g., 01.07.28 down from 9.80% to 9.65%, 15.12.29 from 10.10% to 9.95%). The 91- and 364-day T‑Bill yields held at 8.20% and 8.52%, a T‑Bill auction was fully subscribed (aggregate Rs.108.44bn) and a Rs.250bn Treasury Bond auction is scheduled.
Sri Lanka's central bank became a net US dollar seller in April, selling US$13 million and cutting gross reserves to US$6,579 million (a 3.7% fall). The move coincides with a more than 1% rupee depreciation in the month through May 8 and continued preparation for sovereign bond repayments from April 2028.
Sri Lanka's official worker remittances rose 18.9% to US$767.9m in April 2026 and were up 24.5% to US$3,062.8m in Jan–Apr 2026. The rise reflects more Sri Lankans working abroad and a shift from informal transfers after central bank policy and exchange-rate normalization.
Sri Lanka's rupee closed weaker at 321.70/90 to the US dollar, slightly softer than the prior session, while government bond yields were largely steady — for example, the 15.02.2028 bond at 9.40/55% and the 15.06.2034 bond at 11.12/17%.
Sri Lanka's official reserve assets fell below USD 7 billion in April 2026, declining from USD 7,026 million at end-March to USD 6,759 million (a 3.8% drop); foreign currency reserves fell 4.3% to USD 6,505 million. Reserves had briefly exceeded USD 7.28 billion in February but have fallen for two consecutive months.
Sri Lanka's rupee was quoted at 321.80/90 per US dollar on Friday, slightly weaker than 321.70/85 the previous day; government bond yields were mostly steady with quoted tenors around 9.65%–11.20%. The ASPI fell 0.20% to 22,952.
PayPal will launch in Sri Lanka on 15 May, initially enabling inward B2B payments to exporters with selected local banks appointed as agents. The rollout aims to formalise inward remittances and increase regulated foreign currency inflows under CBSL oversight.
Secondary bond yields fell sharply after reports of a possible US–Iran deal, with key maturities trading lower (e.g., 01.07.28 at 9.65%; 15.06.29 ~9.90%; 01.10.32 at 10.70%). Money‑market liquidity surplus was Rs.249.98bn and USD/LKR closed at 321.70/321.80.